US sanctions on China to affect Turkey: Millions of dollars in additional costs

The US administration is preparing a new sanctions plan targeting cargo ships produced in China or owned by China. This plan envisions additional fees of millions of dollars every time these ships enter US ports. If this proposal becomes law, significant changes could occur in global maritime trade.

The proposed regulation includes a requirement for Chinese-owned or Chinese-built ships to pay a fee of 1 million dollars or more for each entry into US ports. This situation could also affect the trade of many countries, including Turkey. Subjecting Chinese-made ships to this fee at every port visit could also lead to the consideration of different tonnage-based calculations.

Economists state that these sanctions could harm the US supply chain and that shipping companies might seek alternative routes. For example, companies might consider using Mexican and Canadian ports to transport goods to the US via land transport.

World Shipping Council President Joe Kramek stated that these policies could lead to job losses at US ports and increase consumer prices.

ACCUSATION OF 'DISTORTING THE FACTS' AGAINST THE US

China, meanwhile, is criticizing this plan in harsh terms. The Chinese Ministry of Foreign Affairs argues that this move by the US violates World Trade Organization rules. The China National Shipbuilding Industry Association and the China Shipowners' Association also described the results of the US investigation as a distortion of the facts.

The Office of the United States Trade Representative (USTR) presented this proposal, claiming that China is unfairly distorting the international ship production market. While the share of Chinese shipyards in global ship production was 5 percent in 1999, it has exceeded 50 percent as of 2023. This development is being criticized on the grounds that the US is pursuing a policy of subsidizing its own shipbuilding sector.

The proposal will be open for public comment until March 24, and the administration will make its final decision on whether or not to implement this policy.

News Source: 12punto